When Intel Corp. /quotes/zigman/20392/quotes/nls/intc INTC -0.34% released the Ultrabook, it looked to be the key competitor to Apple’s MacBook. That clearly hasn't happened. Earlier this year, research firm IHS had forecast that 22 million ultrabooks would be shipped by the end of 2012 and an additional 61 million would be shipped in 2013. However, by October, the firm changed its projections drastically, predicting that just 10 million would be sold this year, and only 44 million would be sold in 2013. The problem with the Ultrabook is twofold. Ultrabooks are highly expensive in a market where pricing is everything—the majority cost around $1,000. But the larger issue is the increasing movement to mobile devices such as smartphones and tablets.
How about PC convertibles and detachables? These reports are talking about ultrabooks before taking into account of windows 8 and touch-enabled PCs. The newer and sleeker Convertibles and detachables PCs are going to be flood the market and cannibalized the tablets. The value proposition for these newer PCs are: better performance, better battery life, both a PC and tablet in one device (why buy two separate device?), and abilility to use your existing PC software.